VIS upgrades entity ratings of BMA Capital Management Ltd

August 12, 2025 (MLN): VIS Credit Rating Company Limited (VIS) has upgraded entity ratings of BMA Capital Management Limited to ‘A/A2’ (Single A/A Two) from ‘A-/A2’ (Single A Minus/A Two).

Long-term rating of ‘A’ reflects good credit quality with adequate protection factors.

Risk might fluctuate depending on the state of the economy.

Short-term rating of ‘A2’ signifies good likelihood of timely repayment of short-term obligations, with sound short-term liquidity factors.

Outlook on the assigned ratings is ‘Stable’. Previous rating action was announced on February 01, 2024.

BMA is engaged in provision of equity brokerage services, with presence in commodity, fixed income and forex segments as well.

Additionally, economic research and corporate financial advisory are other value-added services offered by the Company.

Headquartered in Karachi, the brokerage house has a nation-wide network of twenty branches.

The Company holds a Trading Right Entitlement Certificate (TREC) for Trading & Self Clearing Services issued by the Pakistan Stock Exchange Limited (PSX).

External auditors of the Company are on the approved list of auditors published by the State Bank of Pakistan (‘SBP’).

The ratings upgrade accounts for improved capital structure, reflected in the marked reduction in gearing ratio based on lower borrowings as well as increase in the Company’s equity base, supported by higher profitability in line with significantly enhanced performance of PSX.

Assigned ratings also incorporate the Company’s sound franchise value, underpinned by its three decades long presence in the brokerage industry.

Liquidity profile of the Company is considered sound.

Likewise, market risk of the Company has lowered on account of an increase in equity base.

Going forward, the company’s efforts to diversify its earning streams through its subsidiary company in addition to maintenance of gearing and liquidity profile, along with prudent management of market risk will be important for the ratings.

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